Today (Oct 9), the market for grains in China is shown as follows:

Corn:

Corn prices stay stable with slight adjustment in some regions of China today. And the average price is 2,297 CNY/tonne nationwide, up 21 CNY/tonne compared with National Day holidays ago. The price among deep-processing enterprises in Shandong prevails at 2,270-2,480 CNY/tonne with partial adjustment of 2-60 CNY/tonne compared to before holidays. At Jinzhou port, Liaoning, the purchasing price of 2020 new corn is raised to 2,380 CNY/tonne, up by 10 CNY/tonne from yesterday and 30 CNY/tonne from last Wednesday. At Bayuquan port, Liaoning, new corn of 2020 with volume weight of 720 g/L (moisture within 15%, impurity with 1%, mildew with 2%) is priced at 2,380 CNY/tonne, an increase of 30 CNY/tonne from last Wednesday.

Due to reduced corn output in growing area and less corn volume oriented by policy, the overall supply in market gets tightened. And marketers are bulling the outlook, so they intend to stock up corn. The listing price among Northeastern deep-processing enterprises keeps being pulled up. As of now, corn sales in North China are relatively slow on the whole. And the arrival of corn at Shandong deep-processing enterprises is still not considerable, totaling only 526 trucks today with a decrease of 190 trucks from yesterday and 29 trucks from a year earlier. Hence, many firms still have intention to raise price. Besides, after National Day holidays, corn futures on Dalian Commodity Exchange extend opening gains and skyrocket today, so investors take a large buying. These have together boosted corn price by 20-60 CNY/tonne compared with holidays ago in spot market. In the near term, corn market will maintain high levels. And buyers can close eyes on the marketing of new corn.

Sorghum:

Domestic sorghum prices are stable with a partial rise today. The supply of sorghum is decreasing at present and grain merchants have seen bigger margins, so that farmers and traders have strong sentiment in propping up prices. In addition, domestic sorghum will see lower production as new crops in northeastern regions have been hit by typhoons. However, imported sorghum of lower prices will be arriving at domestic ports, which will undermine domestic sorghum market. Overall, domestic sorghum prices are predicted to stay stale with a strengthening trend.

Imported sorghum prices are higher in China today and the average price is at 2,506 CNY/tonne. Market participants are concerned that escalating U.S.-China tensions could affect future imports of sorghum. Moreover, the cost of importing sorghum is also strengthening due to the coronavirus pandemic, and domestic holders now have small stocks of Australian sorghum amid tensions between China and Australia. However, imported sorghum stocks at Guangdong ports still total 213,000 tonnes as of Sept 25. And an expected rise in sorghum arrivals will probably weigh down US sorghum prices in China. Participants can focus on the development of US-China relations.

Barley:

Imported barley prices go up today and the average is at 1,991 CNY/tonne. As of Sept 25, imported barley stocks totaled 620,000 tonnes at Guangdong ports. There will be vessels arriving gradually in coming months, while downstream buyers have weak demand now, which will be negative to the market. In addition, barley shipments from Argentina, Canada and France have been flowing toward China as a conflict between China and Australia reshapes global trade pattern, which is also undermining domestic barley market. Merely, China has halted barley imports from Australia’s largest grain exporter whose shipments were found with pests on multiple occasions. This further disrupts barley trade between these two nations. Overall, imported barley prices are predicted to stay stable in China.

(USD $1=CNY ¥6.78)